SEGMENT AND GEOGRAPHIC INFORMATION

The Company is organized based upon the nature of its products and services, and is composed of two operating segments each overseen by a segment manager. These segments are reflective of how the Company’s Chief Executive Officer, who is its Chief Operating Decision Maker (“CODM”), reviews operating results for the purposes of allocating resources and assessing performance. The Company has not aggregated operating segments for purposes of identifying reportable segments.

The Distribution segment is a leading power transmission, automation and fluid power industrial distributor with operations throughout the United States. The segment provides electro-mechanical products, bearings, power transmission, motion control and electrical and fluid power components, along with engineered integrated solutions for its customers' most challenging applications serving a broad spectrum of industrial markets, including both maintenance, repair and overhaul ("MRO") and original equipment manufacturer ("OEM") customers.

The Aerospace segment produces and markets proprietary aircraft bearings and components; super precision, miniature ball bearings for the medical, industrial and aerospace markets; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; and safe and arming solutions for missile and bomb systems for the U.S. and allied militaries. The segment also markets the design and supply of aftermarket parts to businesses performing MRO in aerospace markets; performs helicopter subcontract work; restores, modifies and supports the Company's SH-2G Super Seasprite maritime helicopters; and manufactures and supports the Company's K-MAX® manned and unmanned medium-to-heavy lift helicopters.

Summarized financial information by business segment is as follows:



	For the Three Months Ended
In thousands	March 29, 2019			March 30, 2018
Net sales:
Distribution	$	290,954		$	283,932
Aerospace	166,434			179,395
Net sales	$	457,388		$	463,327
Operating income:
Distribution	$	12,697		$	11,834
Aerospace	26,612			22,662
Net gain on sale of assets	61			63
Corporate expense	(16,006		)	(13,835		)
Operating income	23,364			20,724
Interest expense, net	5,313			5,352
Non-service pension and post retirement benefit cost (income)	(99		)	(3,029		)
Other income, net	(91		)	(342		)
Earnings before income taxes	18,241			18,743
Income tax expense	4,116			4,677
Net earnings	$	14,125		$	14,066

17. SEGMENT AND GEOGRAPHIC INFORMATION (CONTINUED)

Disaggregation of Revenue

The following table disaggregates total revenue by major product line.



	For the Three Months Ended
	March 29, 2019		March 30, 2018
In thousands
Distribution
Bearings and Power Transmission	$	145,967	$	143,385
Automation, Control and Energy	89,292		85,161
Fluid Power	55,695		55,386
Total Distribution Sales	$	290,954	$	283,932

Aerospace
Military and Defense, excluding fuzes	$	35,642	$	47,756
Missile and Bomb Fuzes	57,594		52,985
Commercial Aerospace and Other	73,198		78,654
Total Aerospace Sales	$	166,434	$	179,395

Total Sales⁽¹⁾	$	457,388	$	463,327

⁽¹⁾Service revenue was not material for the three-month fiscal periods ended March 29, 2019 and March 30, 2018.

The following table illustrates the approximate percentage of revenue recognized for performance obligations satisfied over time versus the amount of revenue recognized for performance obligations satisfied at a point in time for the Aerospace segment:



	For the Three Months Ended
In thousands	March 29, 2019		March 30, 2018
Revenue recognized for performance obligations satisfied:
Over time	43	%	47	%
Point-in-time	57	%	53	%
Total revenue⁽¹⁾	100	%	100	%

⁽¹⁾ The disaggregation of revenue recognized for performance satisfied over time versus point-in-time has not been included for the Distribution segment, as the majority of its revenue is recognized on a point-in-time basis with only approximately 3.5% and 2.0% of revenue recognized for performance obligations over time for the three-month fiscal periods ended March 29, 2019 and March 30, 2018, respectively.

17. SEGMENT AND GEOGRAPHIC INFORMATION (CONTINUED)

Disaggregation of Revenue - continued

For contracts that recognize revenue over time, the Company performs detailed quarterly reviews of the progress and execution of its performance obligations under these contracts. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. The risks and opportunities include management's judgment about the ability and cost to achieve the schedule (e.g. the number and type of milestone events), technical requirements (e.g., a newly-developed product versus a mature product) and other contract requirements. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the performance obligation (e.g. to estimate increases in wages and prices for materials and related support cost allocations), execution by subcontractors, the availability and timing of funding from customers and overhead cost rates, among other variables. Based upon these reviews, the Company will record the effects of adjustments in profit estimates each period. If at any time management determines that in the case of a particular contract total costs will exceed total contract revenue, a provision for the entire anticipated contract loss is recorded at that time. The Company recognized a reduction in revenue of $0.8 million in the three-month fiscal period ended March 29, 2019. This amount was primarily related to cost growth on the SH-2G program, partially offset by favorable cost performance on certain Aerospace contracts, more specifically the FMU-139 fuzing contract. The amount of revenue recognized in the three-month fiscal period ended March 30, 2018 from performance obligations satisfied (or partially satisfied) in previous periods was $1.6 million. These amounts were primarily related to changes in the estimates of the stage of completion of Aerospace contracts, more specifically the JPF contract with the USG and the AH-1Z contract.